Renters Insurance Policies - Why You Need Them?

By Compuquotes Team on March 27th, 2008

Renters insurance policies are designed to protect the contents of a rented property against losses caused by theft, fire, or any other damages due to a hurricane and other natural disasters. A Renters insurance policy can also include a personal liability protection that will cover any injuries that might occur on your property.

A Renters insurance policy will specifically say what you are insured against. Included is a standard set of covered perils by that specific policy. Commonly they include fire, lightning, windstorm, smoke, vandalism or malicious mischief, theft, and accidental discharge of water due to a burst pipe. Renters insurance an also include the coverage of medical expenses for non-residents.

Flood, earthquake, and hurricane are usually sold separately from renters policies in coastal areas and where damage due to one of these is common. Windstorm coverage is usually purchase as a backup to the main policy.

When valuing your home contents there are two methods renters policies use. The first being the actual cash value, second the replacement cost. The actual cash value will pay back what the belongings were worth at the time of the loss. However a replacement cost will provide the policy holder with the actual cost of the property at the time of the loss.

It is wise to have very expensive personal items such as jewelry and antiques to be declared at the time of purchase as separate policies or rider policies may need to be issued. If an expensive item isn't declared then the policy holder won't be able to recover any losses due to the damage or theft of these items.

You should always keep a complete inventory of all your belongings to make sure you will receive full compensation in the event of a loss. Try to be as detailed as possible when it comes to your inventory, including the serial numbers and value of all items. It is also recommended to keep all receipts from the purchases of expensive items, if possible outside the house to ensure the documentation is safe.

If there should be a bad storm and your entire house is flooded out, there is an insurance policy option that will pay for additional living expenses. In fact it will provide in the event of any covered loss that renders your property uninhabitable. This option will provide you with money for hotel, food, and laundry until you can move back home.

Many policies include a waterbed liability provision so that if the waterbed were to break, the policy will exclude coverage of the damages caused to the unit under the policy-holder's package.

Some Renters insurance providers that do not underwrite renters policies for customers owning specific dog breeds.

Investing in a Renters insurance policy is wise for both your family and your family's belongings. Everyday there are people suffering from losses they could have replaced had only they invested a small amount into a premium every month. In the event of you son's friend falling and breaking his back on your lawn medical bills could add upwards of $200,000. Bills like that could devastate a family, so it is better to be safe than sorry.